GM says new products will boost China sales in '09

General Motors Corp., struggling to avoid bankruptcy, aims to accelerate growth in China in 2009 to the fastest in two years, betting new models will reverse waning demand for its locally made Buick and Chevrolet cars.

GM expects to sell as many as 1.2 million vehicles in 2009 in China, 9.1 percent more than the current year's target, Kevin Wale, president of GM China said in a Bloomberg Television interview aired today. Sales may rise about 6.8 percent to 1.1 million this year.

"The market next year is going to be a little tough in the first half, but it will pick up in the latter half," Wale said.

Detroit-based GM, Ford Motor Co. and Chrysler LLC, are seeking $34 billion from the U.S. government to stave off any industry collapse. Sales of GM's Chinese-made vehicles have risen 8.1 percent this year through October, compared with a 20 percent slide in its U.S. vehicle sales.

GM, the biggest overseas automaker in China, is counting on emerging markets and a U.S. government bailout to help it survive a plunge in North American sales. The automaker added a new Buick Regal on Dec. 1 in China and plans to introduce 10 new models in the country by 2011, according to Wale.

GM's China-made vehicle sales rose to 861,458 in the first 10 months, as sales dropped to 2.56 million in the U.S. China's industrywide auto sales rose 11 percent to 7.83 million in the period.

Industry Demand

Vehicle sales in China may fall short of a sales forecast of 10 million units this year, as slowing economic growth undermines consumers' purchasing power, according to China Association of Automobile Manufacturers. The industry's consensus for sales growth next year is 5 percent to 10 percent, compared with a 22 percent gain in 2007.

The carmaker's China sales rose 19 percent to 1.03 million vehicles last year, about 11 percent of its global total.

GM makes cars in China through a venture with SAIC Motor Corp., the largest domestic automaker. The company also has a minivan venture in the country.

SAIC fell 0.2 percent to 6.36 yuan as of 12:30 p.m. in Shanghai. GM fell 16 percent to $4.11 on the New York Stock Exchange yesterday.